Insurance Agent Licensing Examination (Даатгалын төлөөлөгчийн эрх олгох шалгалт, Mongolia)

How does Article 6.1 of Mongolia's Law on Insurance classify insurance?

• AInto long-term insurance and general insurance
• BInto compulsory insurance and voluntary insurance
• CInto property insurance and liability insurance
• DInto direct insurance and reinsurance

Under Articles 6.3 and 6.5 of the Law on Insurance, who establishes the forms of compulsory insurance and the forms of voluntary insurance?

• AThe FRC establishes both the compulsory and the voluntary forms
• BCompulsory forms are established by law; voluntary forms are established by the FRC
• CThe Government establishes compulsory forms; each insurer's board establishes voluntary f…
• DCompulsory forms are established by law; each insurer sets its own voluntary forms with n…

Which activity matches the definition of 'insurance activity' (даатгалын үйл ажиллагаа) in Article 4.1.1 of the Law on Insurance?

• ABringing an insured together with an insurer so that they conclude a contract, in return…
• BInvestigating a claim and establishing the actual loss on behalf of a party, in return fo…
• CAn insurer undertaking under an insurance contract to pay the loss or agreed indemnity wh…
• DCollecting money from the public and investing it so as to pay each contributor a guarant…

Who can be an 'insurer' (даатгагч) under Articles 4.1.2 and 18.1 of the Law on Insurance?

• AAny registered legal entity, including a cooperative, that has notified the FRC
• BAn individual who has passed the FRC's insurance examination
• CA non-bank financial institution licensed for lending, without a separate insurance licen…
• DA company that holds a special licence (тусгай зөвшөөрөл) to conduct insurance activity

Under Article 4.1.3 of the Law on Insurance, who is the 'insured' (даатгуулагч)?

• AA citizen or legal entity that insures its own interest and has concluded an insurance co…
• BOnly the person named in the contract to receive the payout after an insured event occurs
• CThe agent who signed the contract on the insurer's behalf and collected the premium
• DOnly a legal entity; individuals are covered only as named beneficiaries under a company'…

What is an 'insured event' (даатгалын тохиолдол) under Article 4.1.4 of the Law on Insurance?

• AThe date on which the insured submits a written claim to the insurer
• BDamage to the insured subject matter, or the occurrence of the condition agreed in the co…
• CThe loss adjuster's written conclusion on the amount of the loss
• DAny accident or mishap involving the insured person or property, whether or not the contr…

Under Article 4.1.5 of the Law on Insurance, what is the 'insurance premium' (даатгалын хураамж)?

• AThe money the insurer pays the insured when an insured event occurs
• BThe commission that the insurer pays its agent for each insurance contract concluded
• CThe payment the insured makes to the insurer for insuring its subject matter
• DThe maximum amount the insurer will pay under the contract

Article 8.4 of the Law on Insurance lists the documents on which an insurer pays indemnity. Which item is NOT on that list?

• AThe insured's application
• BThe original of the insurance policy (даатгалын баталгаа)
• CThe loss adjuster's written or electronic conclusion on the loss
• DA court judgment confirming the insurer's liability

How does Article 8.7 of the Law on Insurance deal with the insured's right to claim from the person at fault for a loss?

• AIf the contract so provides, the right passes to the insurer to the extent of the indemni…
• BThe right passes to the insurer for the full amount of the loss, even before any indemnit…
• CThe insured keeps the right and may recover from the wrongdoer in addition to receiving t…
• DThe right passes to the FRC, which recovers from wrongdoers on behalf of all insurers

Which of these is a ground in Article 8.5 of the Law on Insurance for refusing indemnity in whole or in part?

• AThe loss is far larger than the total premium the insured has paid
• BThe insured intentionally caused the loss or created the conditions for the insured event
• CThe insured notified the loss late, but the delay did not harm the insurer
• DThe insured also holds a separate policy with another insurer covering a different proper…

Why must an insurer form an insurance reserve fund (даатгалын нөөц сан) under Article 25 of the Law on Insurance, and how must it be held?

• ATo pay shareholder dividends; it may be held in any bank account the board chooses
• BTo pay agents' commissions and bonuses; it is held centrally by the Association of Compul…
• CTo secure its obligations under its insurance contracts; it is held in a dedicated accoun…
• DTo finance the Driver's Insurance Fund; it is deposited with the Bank of Mongolia

In the Law on Insurance, what does 'давхар даатгалын үйл ажиллагаа' (Article 4.1.9) mean?

• AAn insured buying policies from two different insurers on the same property for the same…
• BAn insurer guaranteeing a borrower's mortgage down payment to the lender
• CAn insurer renewing an expiring contract on the same terms for a further period
• DAn insurer re-insuring, in whole or in part, the obligations it has assumed toward its in…

What does Article 56 of the Law on Insurance prohibit?

• AAn insurer paying any fee or charge to someone not licensed as a broker, agent or loss ad…
• BAn insurer paying commission to more than one licensed agent for the same contract
• CAn insurer paying a licensed agent's commission before the client's premium has been full…
• DAn insurer paying commission to a licensed broker for placing compulsory insurance

Which body regulates and supervises insurance activity under Article 12.1 of the Law on Insurance?

• AThe Bank of Mongolia
• BThe Financial Regulatory Commission (Санхүүгийн зохицуулах хороо)
• CThe central state administrative body in charge of insurance (the ministry)
• DThe Association of Compulsory Insurers

Under Article 8.2 of the Law on Insurance, when may an insurer pay indemnity directly to a third party?

• AOnly when a court has ordered the insurer to pay the third party
• BNever; indemnity must always be paid to the insured, who is then responsible for compensa…
• CWhen the contract so provides, to a third party who suffered loss through the insured's f…
• DOnly when the third party is also insured with the same insurer

An insured dies, and the insured event occurs afterwards. Under Article 8.3 of the Law on Insurance, who receives the indemnity?

• ANo one; the contract ends automatically on the insured's death
• BThe agent who sold the policy, to hold on behalf of the family
• CThe insurer keeps it unless a beneficiary was named in writing
• DThe insured's heirs by law or under a will (өв залгамжлагч)

How are premium amounts set under Article 7 of the Law on Insurance?

• ACompulsory premiums are set by law; voluntary premiums by the insurer, using the Package…
• BAll premiums, compulsory and voluntary, are set by the FRC separately for each insurer an…
• CCompulsory premiums are set by each insurer; voluntary premiums are set by the FRC for th…
• DAll premiums are negotiated freely between the agent and each client, within the insurer'…

What business-scope rule does Article 49 of the Law on Insurance impose on insurers?

• AIt may carry on any lawful business, in Mongolia or abroad, if its board of directors app…
• BIt may carry on only insurance and insurance-related activities, in Mongolia and abroad
• CIt may also take deposits from the public if it holds a Bank of Mongolia licence
• DIt may carry on insurance only within Mongolia and may not do business abroad

Under Civil Code Article 431.1, what obligations does an insurance contract create?

• AThe insurer pays the sum insured when the contract expires, and the insured pays premium…
• BThe insurer undertakes to prevent the insured event, and the insured pays a service fee f…
• CThe insurer pays the loss or the agreed indemnity when an insured event occurs, and the i…
• DThe insurer guarantees the insured's debts to a lender, and the lender pays the premium

What can be the subject matter of insurance (даатгалын зүйл) under Civil Code Article 431.2?

• AOnly property; life and health are covered only by social insurance
• BOnly property that is registered with a state registry
• CAny interest at all, including one arising from unlawful activity, provided it is fully d…
• DProperty, the life and health of citizens, and non-property interests not contrary to law

What form rule applies to an insurance contract under Civil Code Article 431.3?

• AUnless a law provides otherwise, it must be in writing, and a contract that is not made i…
• BIt may be made orally, but must be confirmed in writing within 30 days
• CIt must be notarised to be valid
• DIt should be in writing, but an oral contract becomes valid and binding once the first pr…

Civil Code Article 431.4 lists the terms an insurance contract must contain. Which of these is NOT on that list?

• AThe type of insured risk
• BThe commission rate the insurer pays its agent
• CThe sum insured (даатгалын үнэлгээ)
• DThe premium amount and the date by which it must be paid

An insured misses a premium due date. Under Civil Code Article 437.1, what may the insurer do?

• ACancel the contract immediately, without giving the insured any notice or any further tim…
• BKeep cover in force and deduct the unpaid premium from any indemnity it later pays
• CSet a further 15 days to pay and notify, in writing or electronically, what happens if th…
• DSet a 30-day grace period during which cover is automatically suspended until payment is…

Under Civil Code Article 436.2, which circumstances count as 'material' (ноцтой) for the insured's disclosure duty?

• AOnly facts that the insured personally, acting in good faith, considers relevant to the r…
• BOnly facts recorded in a public registry, since the insurer could not otherwise verify th…
• COnly facts that later turn out to have caused or contributed to an insured loss under the…
• DFacts that could sway the insurer's decision to decline or change the contract, or that i…

An insured gave incorrect facts about a material circumstance. Under Civil Code Article 436.5, when may the insurer NOT withdraw from the contract?

• AWhen the insurer knew the facts were wrong, or the insured was not at fault in giving them
• BOnce the contract has been in force for more than one year without any claim
• CWhen the premium for the whole contract term has already been paid in full
• DWhen the insured corrects the facts in writing after a claim has been made but before it…

The insured did not report a material increase in risk that arose after the contract was concluded. Under Civil Code Article 436.3, what may the insurer do?

• AOnly reduce the next indemnity payment by a fixed 50 percent, leaving the rest of the con…
• BWithdraw, or within 1 month of learning of it cancel or demand a higher premium; cancel a…
• CCancel at any time within 1 year of learning of it and keep all the premium paid, whateve…
• DTake no action on its own; any cancellation or premium change first needs the FRC's writt…

An insured told the insurer about an insured event late, but the delay did not seriously harm the insurer's interests. What does Civil Code Article 439.3 provide?

• AThe insurer is released from all liability for that event
• BThe indemnity is automatically reduced by half
• CThe insurer is not released from its obligation
• DThe insurer may refuse unless notice was given within 3 days

During an insured event, what must the insured do to limit the loss, and who pays for it under Civil Code Article 439.5?

• ADo nothing until the loss adjuster arrives, so that the scene is preserved exactly as it…
• BTake measures only if the contract contains an express mitigation clause, with the insure…
• CTake measures at the insured's own expense, because mitigation costs are not insured loss…
• DTake steps to avert the danger or reduce the loss as the insurer instructs, with the insu…

Under Civil Code Article 440, what may an insurance agent do once the insurer has authorised it to conclude insurance contracts?

• AChange the contract terms, extend the term, or cancel the contract
• BOnly collect premium; any change to a contract needs a new contract signed by the insurer
• CSettle claims up to the sum insured without referring them to the insurer
• DMove a client's contract to another insurer that the agent also represents

Property worth MNT 80,000,000 is insured for MNT 100,000,000, with no fraud involved. What is the effect under Civil Code Article 438.4?

• AThe whole contract is void
• BThe contract is void for the MNT 20,000,000 that exceeds the property's value
• CThe contract is valid in full, and a total loss would pay the full MNT 100,000,000
• DThe insurer must refund the whole premium and issue a new policy

Before claiming under a property policy, the insured waived his claim against the at-fault neighbour. Under Civil Code Article 443.7, what follows?

• ANothing changes; the insurer pays in full and cannot recover from anyone
• BThe waiver is void, so the insurer may still sue the neighbour after paying
• CThe insurer is released from paying to the extent of the waived claim
• DThe insurer must pay in full and may then recover the amount from the insured

An insured covers the same interest with several insurers at once, and the combined sums insured exceed the property's value. What does the Civil Code (Articles 443.4–443.5) provide?

• AEach insurer pays its full sum insured, so the insured may recover more than the actual l…
• BOnly the first insurer is liable; the later contracts are void from the start
• CThe insured may choose any one insurer, which must pay in full and cannot then seek any c…
• DEvery insurer must be notified immediately; the insurers perform jointly, and recovery ca…

A warehouse worth MNT 200,000,000 is insured for MNT 150,000,000. A fire causes an MNT 40,000,000 loss, and the contract has no first-loss clause. Under Civil Code Article 438.5, how much indemnity is payable?

• AMNT 40,000,000
• BMNT 30,000,000
• CMNT 10,000,000
• DMNT 53,333,333

Under a compulsory liability policy, the insurer is released from its obligation to its own insured (for example, because the insured breached the contract). Under Civil Code Articles 444.5–444.6, what is the position of the injured third party?

• AThe insurer stays liable to the third party and, after paying it, takes over that claim a…
• BThe third party may claim only from the insured personally and can never claim directly f…
• CThe insurer's liability ends, and the third party must claim from the Driver's Insurance…
• DThe insurer is liable to the third party only up to the amount of premium it received

A client cancels a one-year policy early, before any insured event. Under Civil Code Article 437.3 and the FRC's Package Rules, what happens to the premium?

• AThe insurer keeps the full annual premium, because the contract was concluded for a whole…
• BThe insured receives a full refund of all premium paid, with no deduction of any kind all…
• CThe unused part of the premium is refunded in full, but only on the date the original one…
• DPremium for the period on risk plus a service fee is kept; the rest is refunded within 5…

Under Article 3.2.1 of the Law on Insurance Professional Participants, which three roles make up 'insurance professional participants' (даатгалын мэргэжлийн оролцогч)?

• AThe insurance company (insurer), the insurance broker and the insurance agent
• BThe insurance agent, the insurance broker and the actuary
• CThe insurance broker, the insurance agent and the reinsurance company
• DThe insurance broker, the insurance agent and the insurance loss adjuster

How does Article 3.2.2 of the Law on Insurance Professional Participants define an insurance agent (даатгалын төлөөлөгч)?

• AA person appointed or authorised by an insurer to protect its lawful interests and to act…
• BA person who, under authority from an insurer or an insured, connects that party with a c…
• CA person who examines claims and establishes the actual loss on behalf of an insurer or a…
• DAn insurer's salaried employee who sells the insurer's policies to walk-in customers at a…

An insurer's full-time salaried employee sells policies at the insurer's branch. How does Article 3.3 of the Law on Insurance Professional Participants treat this employee?

• AAs an insurance agent who must hold agent authorisation
• BAs not being an insurance agent within Art. 3.2.2
• CAs an insurance broker acting for the insurer
• DAs a loss adjuster if the employee also handles claims

Under Article 3.2.3 of the Law on Insurance Professional Participants, what does an insurance broker (даатгалын зуучлагч) do?

• ARepresents one insurer only, under a written agreement, and enters into transactions in t…
• BTakes control of an insolvent insurer's affairs and assets under a court order
• CActs, under authority from an insurer or insured and in its interest, to connect it with…
• DSets the premium rates that apply to compulsory insurance forms across the market

Under Article 3.2.4 of the Law on Insurance Professional Participants, what is an insurance loss adjuster (даатгалын хохирол үнэлэгч)?

• AA person who sells policies on behalf of one insurer under a written cooperation agreement
• BA person who audits insurers' annual financial statements and reports any serious breache…
• CA person who connects clients with insurers and is paid a commission for each placement
• DA person who, for a fee, independently examines claims, sets the actual loss and negotiat…

Which persons does Article 3.4 of the Law on Insurance Professional Participants say are NOT treated as insurance loss adjusters?

• AAn employee of an insurer or of an insurance agent, and an insurance agent itself
• BProperty valuers employed by a licensed loss adjuster company
• CEngineers engaged by a loss adjuster to inspect vehicle damage
• DLoss adjuster companies that also hold a property-valuation licence from the relevant aut…

Under Article 12.1 of the Law on Insurance Professional Participants, which authorisations may be granted only to a company?

• AAll three: agent, broker and loss adjuster authorisations
• BBroker and loss adjuster authorisations; an agent may be an individual or a legal entity
• COnly agent authorisation; brokers and loss adjusters may be individuals as well as compan…
• DOnly loss adjuster authorisation; brokers may be individuals

Under Article 10.4.2 of the Law on Insurance Professional Participants (as amended on 3 July 2026), what training and examination condition applies to an individual who wants to carry on insurance agent activity?

• AHolding a university degree in finance or economics
• BHaving two years of sales experience with a licensed insurer
• CHaving completed insurance agent training, passed the examination and become qualified (м…
• DHaving completed training only; the examination applies only to corporate agents' staff

A company wants to carry on insurance agent activity. What does Article 10.5.2 of the Law on Insurance Professional Participants require of its staff?

• AOnly its executive director must pass the examination; other staff need no formal qualifi…
• BIt must employ at least one person who holds broker authorisation
• CStaff may begin serving clients and pass the examination within their first year
• DIts employees who serve insureds must have completed insurance agent training and passed…

Which statement about the 'fit and proper person' (тохиромжтой этгээд) requirement in the Law on Insurance Professional Participants is correct?

• AAn individual agent must be fit and proper (Art. 10.4.1), and the FRC may issue guidance…
• BIt applies only to the shareholders and officers of broker companies, and not to individu…
• COnly the appointing insurer assesses it under its own policy; the FRC has no role in defi…
• DIt is satisfied automatically once the agent has passed the licensing examination

How long is an authorisation to carry on insurance professional-participant activity valid under Article 11.4 of the Law on Insurance Professional Participants?

• AThree years, renewable on application to the FRC
• BWithout a time limit, until it is suspended or revoked under Articles 38 or 39
• CTwo years, renewed by re-sitting the full licensing examination
• DOnly while the agent's current written agreement with an insurer remains in force

What did Article 11.9, added to the Law on Insurance Professional Participants on 3 July 2026, allow?

• AIt requires the FRC to hand all supervision and licensing of agents to each insurer for i…
• BIt moves the licensing of insurance brokers from the FRC to the Association of Compulsory…
• CIt lets the FRC contract out its agent-authorisation function (Art. 8.1.1) to a unified p…
• DIt abolishes agent authorisation, so that anyone may act as an insurance agent